Territorial reach.
GDPR applies to any organization that processes personal data of EEA residents (the EU 27 + Iceland, Liechtenstein, Norway), regardless of where the organization itself is based. For a Shopify merchant:
- You ship to the EEA. Even one shipping option to Germany triggers it. The territorial scope is "offering goods or services to" EEA residents.
- You market to the EEA. A Facebook ad targeted at France, EUR pricing on the storefront, a German-language store locale — all evidence of marketing to EEA residents and bring you in scope.
- You're physically located in the EEA. Then GDPR applies regardless of your customer base.
Most US-based or Canada-based Shopify merchants with international shipping fall under territorial scope. The "we don't do business in Europe" defense rarely holds up if the storefront is technically reachable from the EEA without geo-blocking.